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RE: Why HIVE on ETH Network Has a Huge Potential [Hive DeFi Guide for NewBees Part 1]

in DeFi Campus4 years ago (edited)

I hope you are aware of impermanent loss, if hive rises than the time you provided liquidity you will have less hive.

Edit: to minimize this balancer would be a better choice since you can create custom pools there instead of 50/50 of uniswap. On balancer you can have 90/10 (hive/dai), you will still have impermanent loss but it will be less and it will be negligible after bal token and other fee earnings.

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Yes, although the theory is that in the long-term the earned fees will be higher then the loss in this case. Of course you can always withdraw your provided liquidity if HIVE price will start to go up and use it to buy move HIVE :)